Production planning and production shop floor control of medium sized restaurant : a case study

Abstract

This thesis studies a medium sized restaurant called ABC, located in Bangkok. The objective is to study the production system and daily production operation for more effectiveness without higher investment. The study is focused on re-structuring of the internal organization, starting from in-depth analysis using fishbone diagram in finding the root causes. The results have shown 6 main problems, which needed to be solved. The improvement team was selected from different departments. Team started with product selection process, by Pareto analysis, to eliminate ‘high variety’ problem. There are changes in organization chart and cultures to gain higher stability and team work in production unit. This method also reduces problems of relying too much on individual staffs and increases efficiency of the unit. There are rearrangements of purchasing system and strategically allocate more suitable and flexible purchasing sources to gain more agility while utilizing advantages of the restaurant’s location. The restaurant also implemented MRP (Material Requirement Planning) in order to improve purchasing plans. Several points of risks in shop floor operations are identified and preventive actions suggested along with training for all staffs. The result shows an increase of 29.05% in the revenue over raw material costs ratio, reduction of unavailability of products by 100%, reduction of customer’s complaints by 94.29% and the indirect benefits which reduced operational cost by 43,000 THB per month while gain higher satisfaction in work from all staffs.